Thursday, 7 January 2016

Demands of NC JCM Staff Side and the recommendations of 7th Central Pay Commission

We have compiled the complete list of 42 demands submitted to 7th Central Pay Commission in respect of Central Government employees and pensioners by NC JCM Staff Side and the recommendations of 7th Pay Commission on these demands are highlighted here for your ready reference. Including the all demands, a detailed memorandum was submitted to 7th Central Pay Commission by NC JCM Staff Side on 30th June 2015.

NC JCM STAFF SIDE

7TH CENTRAL PAY COMMISSION

1. Pay scales are calculated on the basis of pay drawn pay in pay band + GP + 100% DA by employee as on 01-01-2014.

1. Pay scales are calculated on the basis of pay drawn by employee as on 01-01-2016

2. 7th CPC report should be implemented w.e.f. 01-01-2014.

2. Recommended Date of implementation w.e.f. 01.01.2016

3. Scrap New Pension Scheme and cover all employees under Old Pension and Family Pension Scheme.

3. No. Commission has recommended to improve the functioning of NPS. It has also recommended establishment of a strong grievance redressal mechanism.

4. JCM has proposed minimum wage for MTS (Skilled) Rs.26,000 p.m.

4. Based on the Aykroyd formula, the minimum pay is recommended to be set at Rs.18,000 pm

5. Ratio of minimum and maximum wage should be 1:8.

5. 7th CPC has extended it to 1:12.5

6. General formula for determination of pay scale based on minimum living wage demanded for MTS is pay in PB+GP x 3.7

6. 2.57 fitment factor is being applied uniformly to all employees

7. Annual rate of increment @ 5% of the pay.

7. The rate of annual increment is being retained at 3 percent

8. Fixation of pay on promotion = 2 increments and difference of pay between present and promotional posts (minimum Rs.3000).

8. Fixation of pay on promotion = 1 increment and the difference of pay according to the cell in the Pay Matrix

10. Dearness Allowances on the basis of 12 monthly average of CPI, Payment on 1st Jan and 1st July every year

10. No. Commission recommends continuance of the existing formula and methodology for calculating the Dearness Allowance

11. Overtime Allowances on the basis of total Pay+DA+Full TA.

Commission recommends to abolish the Overtime Allowance (OTA), at the same time it is also recommended that in case the government decides to continue with OTA for those categories of staff for which it is not a statutory requirement, then the rates of OTA for such staff should be increased by 50 percent from their current levels.

12 Liabilities of all Government dues of persons died in harness be waived.

No. There is no recommendations on this issue.

13. Transfer Policy – Group `C and `D Staff should not be transferred. DoPT should issue clear cut guideline as per 5th CPC recommendation. Govt. should from a Transfer Policy in each department for transferring on mutual basis on promotion. Any order issued in violation of policy framed be cancelled by head of department on representation.

13. Deputation Allowance double the rates and should be paid 10% of the pay at same station and 20% of the pay at outside station.

13. Ceilings should be raised by a factor of 2.25 to Rs.4,500 per month for deputation within the same station, and to Rs.9,000 per month for deputation involving change of station.

14. Classification of the post should be executive and non-executive instead of present Group A, B, C

14. No.

15. Special Pay which was replaced with SPL – Allowance by 4th CPC be bring back to curtail pay scales.

15. Organization Special Pay Abolished.

16. Scrap downsizing, outsourcing and contracting of govt. jobs.

16. In this regard the Commission is of the view that a clear guidance from the government on jobs that can and should be contracted out would be appropriate.

17. Regularize all casual labour and count their entire service after first two year, as a regular service for pension and all other benefits. They should not be thrown out by engaging contractors workers.

17. There is no recommendation on this demand.

18. The present MACPs Scheme be replaced by giving five promotion after completion of 8,15,21,26 and 30 year of service with benefits of stepping up of pay with junior.

18. There is no justification for increasing the frequency of MACP and it will continue to be administered at 10, 20 and 30 years as before.

19. PLB being bilateral agreement, it should be out of 7th CPC preview.

19. There is no recommendation on this demand.

20. Housing facility:- (a) To achieve 70% houses in Delhi and 40% in all other towns to take lease accommodation and allot to the govt. employees.
(b) Land and building acquired by it department may be used for constructing houses for govt. employees.

20. There is no recommendation on this demand.
HRA percentage only revised.

21. House Building Allowance :- (a) Simplify the procedure of HBA
(b) Entitle to purchase second and used houses

34 months’ Basic Pay OR Rs.7,50,000
OR Cost of House OR repaying
capacity, whichever is the least for
new construction/purchase of new
house/flat

22. Common Category – Equal Pay for similar nature of work be provided.

26. Children Education Allowance should be allowed up to Graduate, Post Graduate, and all Professional Courses. Allow any two children for Children Education Allowance.

The maximum ceiling is stipulated at Rs.18000/- since this allowance had been hiked by 50% because of the DA component in salary having been crossed 100% on 1.1.2014.We suggest doubling of this allowance and increasing the same by 50 % whenever the DA crosses over by 50%

27. Fixation of pay on promotion – two increments in feeder grade with minimum benefit of Rs.3000.

The Commission also recommends that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent.

30. Patient Care Allowance to all para-medical and staff working in hospitals.

The present rates of these allowances are: Hospital Patient Care Allowance@ Rs2,100 pm for Group `C’ staff and Rs.2,085 pm for Group `D’ Staff. Patient Care Allowance @ Rs2,070 pm for both Group `C’ and ‘D’ staff.(Click to read more)

34. Leave Entitlement
(i) Increase Casual Leave 08 to 12 days & 10 days to 15 days.
(ii) Declare May Day as National Holiday
(iii) In case of Hospital Leave, remove the ceiling of maximum 24 months leave and 120 days full payment and remaining half payment.
(iv) Allow accumulation of 400 days Earned Leave
(v) Allow encashment of 50% leave while in service at the credit after 20 years Qualifying Service.
(vi) National Holiday Allowance (NHA) – Minimum one day salary and eligibility criteria to be removed for all Non Executive Staff.
(vii) Permit encashment of Half Pay Leave.(viii) Increase Maternity Leave to 240 days to female employees & increase 30 days Paternity Leave to male employees.

No. There is no recommendations on this demand.

35. LTC
(a) Permission to travel by air within and outside the NE Region.

(b) To increase the periodicity once in a two year.

(c) One visit outside country in a lifetime

Extension of LTC to foreign countries is not in the ambit of this Commission.
Splitting of hometown LTC should be allowed in case of employees posted in North East, Ladakh and Island territories of Andaman, Nicobar and
Lakshadweep.
No hometown LTC will be admissible to Railway employees, only “All India” LTC will be granted once in four years.
LTC Advance should be abolished.

(e) Arbitration Award be implemented within six month, if not be discussed with Staff Side before rejection for finding out some modified form of agreement.

No. There is no recommendations on this demand.

Regarding income tax exemption of Ration Money Allowance (RMA), the Commission, as part of its general approach, has refrained from making recommendations involving income tax. However, looking into the unique service conditions of CAPFs, the Commission is of the view that since RMA is granted in lieu of free rations, it should be exempt from income tax.

36. Appoint Arbitrator for shorting all pending anomalies of the 6th CPC.

No

37. Date of Increment – 1st January and 1st July every year. In case of employees retiring on 31st December and 30th June, they should be given one increment on last day of service, i.e. 31st December and 30th June, and their retirements benefits should be calculated by adding the same.

40. Extra benefits to Women employees
(i) 30% reservation for women.
(ii) Posting of husband and wife at same station.
(iii) One month special rest for chronic disease
(iv) Conversion of Child Care Leave into Family Care Leave
(v) Flexi time

Commission recommends that CCL should be granted at 100 percent of the salary for the first 365 days, but at 80 percent of the salary for the next 365 days.

And also recommended to extend the CCL to single male parents.

41. Gratuity :
Existing ceiling of 16 ½ months be removed and Gratuity be paid @ half month salary for every year of qualifying service.

Remove ceiling limit of Rs.10 Lakh for Gratuity

(i) Pension @ 67% of Last Pay Drawn (LPD) instead of 50% presently.

(ii) Pension after 10 years of qualifying service in case of resignation.
90 years – 100% of LPD

(iv) Parity of pension to retirees before 1.1.2006.

(v) Enhanced family pension should be same in case of death in harness and normal death.

(vi) After 10 years, family pension should be 50% of LPD.

(vii) Family pension to son upto the age of 28 years looking to the recruitment age.

(viii) Fixed Medical Allowance (FMA) @ Rs.2500/- per month.

(ix) Extend medical facilities to parents also.

(x) HRA to pensioners.

(xi) Improvement in ex-gratia pension to CPF-SRPF retirees up to 1-3rd of full pension.

The Commission recommends enhancement in
ceiling of gratuity from the existing Rs.10 lakh to Rs.20 lakh from 01.01.2016.

The Commission further recommends, as has been done in the case of allowances that are partially indexed to Dearness Allowance, the ceiling on gratuity may increase by 25 percent whenever DA rises by 50 percent.

The 7th pay commission, which is much expected by all the Central
Government Employees, has submitted its report to the government. In its
report, the commission has specified that the new pay commission has to
be implemented from 01/01/2016 onwards.

The expectations of all the Central Government Employees is focused
on: Dearness Allowance, House Rent Allowance and Children Education
Allowance.

The fact that the 6th Pay Commission revived the CEA can never be
repudiated. Although there are various problems in getting the
reimbursement of the allowance, the 6th Pay Commission stands first when
it comes to CEA.

7th CPC recommended CEA Rs 2250 pm from existing Rs 1500pm.

The 7th Pay Commission has taken great pains to do away with the practical problems in 6th CPC (Reimbursement).

Particularly, the recommendation that getting a letter from the
schools where the children of the Central Government Employees studying
is enough will be certainly welcomed by all.

In order to get CEA for those children, who study in the same school
from class 1 to class 12, is it necessary to get a certificate for every
year? Or is it enough to get a certificate when the child is
transferred to another school?

Questions like these naturally arise in our minds.

Getting good education is depends upon getting admission in standard
schools. Naturally fees structure is high in these schools.So education
expenses get important place in employees monthly budget.

The fact that same amount of CEA will be given for children who study
in class 1 and class 12 is irrational. From class 1, every year when
the child goes to higher classes, the minimal sum of Rs 2250 has to be
increased by atleast 5%.

As per the recommendation of the 7th CPC, when DA exceeds 50%, the
CEA increases by 25%. In this case, even to get the first CEA increase
one has to wait for at least four or five years. We have to keep in mind
that the pay commission is set up only once in ten years.

In spite of all these, the CEA announcement of the 7th CPC is a
certainly a laudable one. If it had included the above aspects if would
have been even more appreciable.

To
The Secretary to Government of India
Ministry of Defence,
New Delhi 110 011.

Sub: Granting of Rs. 4600/- Grade Pay to the skilled Grade
employees who got Rs. 5000-8000 prior to 31.12.2005 on account of
financial upgradation under ACP-II-reg.

Ref: M of D order vide I.D.No.11(5)/2009-D(Civ-I) Dt 06.02.2015.

Sir,
Three Recognised Federations in Defence have served Strike notice to go
for Strike from 17.02.2014 to the Secretary, Ministry of Defence o
settle some of the outstanding and long pending demands of Defence
Civilian Employees.

On the basis of the Strike notice, a meeting was convened by ministry
of Defence to discuss the demands under the Chairmanship of Addl.
Secretary, Ministry of Defence on 06.02.2014. During the discussion some
of the issues were agreed and accordingly necessary orders were issued
on the settled demands.
In this particular demands i.e. granting of Rs.4600/- Grade Pay
w.e.f.01.09.2008 for those Industrial Employees who have completed 30
years of regular and continuous service and got Rs.5000-8000 on or
before 31.12.2005 irrespective of their grade on completing 24 years
service under ACP Scheme has been agreed to consider.

Accordingly after the meeting M of D,(Civ-I) has issued necessary
order vide I.D.No.11(5)/2009-D (Civ-I) Dt 06.02.2015. to grant Rs.4600/-
on completion of 30 years of regular service either w.e.f 01.09.2009 or
after the date of completion of 30 years through MACP-III. In this
letter, M of D mentioned that the benefit of MACP-III will be granted
for HS/MCM employees only whereas, there are many number of skilled
employees who got Rs. 5000-8000 due to stagnation on or before
31.12.2005 and are also eligible along with HS/MCM employees since they
did not get promotions in their hierarchy. This draft and final order is
merely an error, that it was not viewed skilled employees are also
available in the Directorates due to heavy stagnation and continue to
remain in the Skilled grade for 30 years.

This error is purely due to unnoticed and not brought to the
knowledge of M o D but this has created a serious anomaly and denied the
benefit of granting MACP Rs.4600/- Grade Pay to skilled employees. This
M of D letter was issued with the acceptance and approval of Defence
Finance authorities.

When the issue was raised by the Staff side several times in the
steering committees and in the main meetings of Departmental Council
JCM, M of D, necessary action has been initiated by M of D to
consider/include skilled category employees who got ACP-2 Rs.5000-8000
on or before 31.12.2005. Unfortunately, it seems Def (FM) refused to
consider and also DOP&T has also not agreed.

In this respect, we would like to submit that this issue is very much
genuine and the skilled grade employees are also equally eligible for
MACP-3 for Rs.4600/- either from 01.09.2009 or on completion of 30 years
along with HS/MCM. It is also pertinent to mention that grade is not
the criteria for ACP/MACP, only the present Pay/Grade pay and total
number of regular and continuous service is the only criteria for
granting financial upgradation.

It is therefore, requested the M of D may issue suitable amendment to
the M of D letter Dated 06.02.2014 to grant the financial upgradation
to skilled employees to avoid an ligation on the subject.

The undersigned is directed to state that off late it has been
observed that the leave applications for grant of Leave/Ex-India
leave/No Objection Certificate for proceeding abroad are being received
in this HQrs office on the eleventh hour for obtaining sanction of the
Competent Authority, which has been viewed with concern by the Competent
Authority.

2. In this regard, I have been directed to request that applications
of IDAS Officers for any kind of leave including Ex-India leave/
permission to leave the station, should reach this HQrs office well in
advance and the officer(s) should ensure that the leave has been
sanctioned before leaving the station/proceeding abroad.

Financial obligations due to implementation of OROP and 7th CPC Recommendations in the coming financial year – Finance Minister

Finance Minister: Due to various policy measures
undertaken by the present Government, Indian Economy has achieved robust
growth rate despite volatility and uncertainty in global economy; asks
Captains of Indian Trade and Industry to come forward and make increased
Private Investment especially in Infrastructure Sector .

The Union Finance Minister Shri Arun Jaitley said that in the first
half of the Current Financial Year 2015-16, the Indian Economy has
achieved robust growth rate despite volatility and uncertainty in global
economy. He said that this was made possible by a slew of policy
measures undertaken by the present Government including enhanced public
investment, kick starting stalled projects, improving the status of
financial inclusion significantly, improving governance through
systematic changes like open auction of natural resources like coal and
spectrum in a transparent manner, and greater fiscal federalism and
improving business environment through reforms in policies and
regulation among others. Shri Jaitley said that the current level of
growth rate of our economy and sound fiscal fundamentals present better
growth prospects for the next Financial Year 2016-17 as well. The
Finance Minister Shri Jaitley was making the Opening Remarks during his
third Pre-Budget Consultative Meeting with the representatives of
Industry and Trade Groups here today.

The Union Finance Minister Shri Arun Jaitley said that the
Government will continue to expand public spending even during the next
financial year despite the major financial implications of the
recommendations of the 14th Finance Commission which reduced the share
of the Central Government by 10% and its forthcoming financial
obligations due to implementation of One Rank One Pension (OROP) and 7th
Pay Commission Recommendations in the coming financial year. He asked
the representatives of Business and Trade Sector to increase the private
sector spending especially in infrastructure sector.

Various suggestions were received during the aforesaid Consultative
Meeting. Major recommendations include higher investment in irrigation
and rural infrastructure sector as this will increase the spending
capacity of the rural people which in turn will create demand for
various items and increased economic activity. Other suggestions
included focus on disinvestment of public sector undertakings by the
Government to raise additional revenue and to reduce Government
borrowings which, in turn, will make more money available for the
private sector to borrow. Other suggestions included reduction in
subsidy outflows and direct payment of fertilizer subsidy to farmers.

Suggestions were made that 7th Pay Commission recommendations be
implemented in staggered manner and tax collections be increased by
expanding the base. It was suggested that Minimum Alternate Tax (MAT) by
withdrawn in calibrated manner, tax exemptions and allowances be
withdrawn while tax rate may be rationalised in order to bring
transparency, certainty and less discretion to make the tax
administration more transparent and efficient. Tax incentives be given
for use of debit and credit card, payment of utilities be made mandatory
by cheques or through e-payment, clarity of policies by CBEC & CBDT
to its field offices to avoid any discrepancies and discretions in tax
administration and implementation of GST at the earliest.
Other suggestions include measures be taken to revive private sector
investment especially in infrastructure sector through NIIF, use of
Infrastructure Finance Companies like IIFCL to rebuilt the capacity of
the private infrastructure sector by making it easier for them to raise
funds. Bank guarantees be replaced by ‘bid bonds’ or ‘surety bonds’ for
companies which, in turn, will help them getting credit at reduced cost
and removal of cess and surcharges etc.

Other suggestions include measures to attract youth to agriculture
sector by making farming highly mechanized and improving productivity.
For this ‘Agriculture Equipment Banks’ may be set-up, segments of land
be made in three categories, viz, barren land, single crop land and
multi-crop land and separate rules for dealing with each category may be
made.

Start-up parks for attracting young entrepreneurs be set-up on the
line of IT parks. Suggestions were made that in order to ‘Make in India’
and ‘Ease of doing Business’ successful, measures may be taken to
reduce the cost of doing business for which we need to improve
infrastructure and reduce credit cost. To deal with the problem of NPA,
recapitalization of banks be done through offering of shares to public.
As regards tax matters, it was suggested that no appeal should be made
where the two consecutive orders are in favour of the assesse except in
rare situation and assesses may not be asked to deposit in case of first
appeal and be asked to deposit only in case of second appeal.

It was suggested that measures be taken to generate demand in real
estate sector which will in turn boost the steel and cement sectors
which are major sectors for employment generation. Other suggestions
include raise in exemption limit in case of income tax be raised from
Rs. 2.00 lakh to Rs. 5.00 lakh, corporate tax be reduced to 25%, nominal
rate of interest be charged on delayed payments, rationalization of
exemptions and allowances and reduction in tax rates, reduction in
corporate tax be extended to partnership firms etc.

It was suggested that measures be taken to uplift the power sector
which is facing a challenging time, credit to MSME sector be boosted,
Mid Day Meal Scheme may be scrapped due to large scale seepages and
non-transparency in the implementation of the same. Suggestions were
made to boost the exports, especially the MSME exports. It was suggested
to boost e-commerce in mobile payment to achieve the goal of cashless
economy, guidelines be issued for removal of anomalies in case of taxes
being imposed by different States on e-payment and e-commerce. It was
suggested to reduce customs duty on set-top boxes from 10% to 5%,and
media entities be included for carry forward of losses in case of merger
among others.